More commonly known as the "First Right of Refusal Act," this legislation affords franchisees the right to purchase their own stations in any assignment, transfer or sale of a franchised location. This legislation does not afford franchisees any special rights under [image-nocss] a sale, any special discount for equity invested in the premise or any other tool which can be used to make franchisees the preferred purchaser. Instead, this legislation only states that the station at an amount equal to or greater than any other offer for a franchised premise.
The bills were sponsored by New Jersey state senators Gerald Cardinale (R) and Paul Sarlo (D), and assemblymen Patrick Diegnan (D), Jon Bramnick (R), Upendra Chivukula (D) and Ruben Ramos (D). The New Jersey General Assembly passed this legislation by a vote of 70 to 3 to 3, while the Senate concurred with Assembly amendments by a vote of 36 to 0, which sends this legislation to the Governor Jon Corzine's desk.
"It is time to end the abuse of Big Oil upon these small franchisees," said Sal Risalvato, executive director of NJGCA. "The franchisees have been under the wrath of these mega-corporations for too long. Even when Big Oil is ready to get out of the retail marketing chain, they still try to stab these entrepreneurs one last time."
"First Right of Refusal is simply a courtesy placed into statute," Risalvato added. "Unfortunately Big Oil continuously falls far short of showing any courtesy towards its franchisees."
He argued, "Franchisees have purchased the rights to operate these businesses. These franchisees have spent hundreds of thousands on the business and placed their blood, sweat and tears into making these business what they are today. It is time to afford franchisees the right to purchase their stations."
Risalvato concluded, "Gov. Corzine must sign this legislation immediately. There is very strong evidence that at least one Big Oil company will be closing on a deal this week, and without the signature of the governor, the work of the past week will be impaired. New Jersey has the chance to lead the way in the most comprehensive protection for small businesses offered in decades. We led the way in passing the New Jersey Franchise Practices Act in the 1970s and today we illustrated that New Jersey is leading the country forward again."
Click herefor the text of A-3726.
And click here for the text of S-2553.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.